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Project performance measurement beyond the triple constraint
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Project performance measurement beyond the triple constraint


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How can we manage a project based on metrics that truly reflect all stakeholders' definition of success. Investigate how definition of success, critical success factors, KPIs fit together to form a measurement system.
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  • What gets measured gets done: you can’t manage what is not measuredDecision making: 360 degreesGuide people’s behavior proactively: communication of performance. Decision-making is mainly reactiveReduce administrative effort: counter-intuitive, communication efficiency, appropriate level of control
  • Top-down approachImportance of identifying stakeholdersImportance of techniques to elicit expectations
  • One definition of success + perfect info  decision making can be scientificMultiple definitions of success and/or imperfect info  there is always some politicsGood performance measurement system reduces need for politics. Excessive politicking is undesirable consequence of lack of objective performance measurement and decision making mechanisms
  • Top-down approach has to reach the ground! Pitfall is lack of / unclear connections between levels
  • One typical mistake is to choose KPIs based on how easy they are to collect.Another is to choose KPIs that are too complicated / costly to calculateMost organizations have information systems in place to collect basic metrics (ex: timesheets…)As few KPIs as possible
  • User vs. CustomerImportance of delivery managers in large matrix organizationsTeam has expectations tooImportance of conformance, for example PMO, security, technology
  • Focus on KPIs that are important but not so commonly usedImportance of owner: it should not be the PMImportance of measurement methods and target that is objective, easy to implement, and understood by stakeholdersFrequency
  • Transcript

    • 2. WHY MEASURE PERFORMANCE?The rightInformationTo the rightPeopleAt the rightTimeEffectivedecisionmaking2Bruno Collet 20131. What gets measured gets done!2. Effective decision making3. Guide people’s behavior proactively4. Reduce administrative effort
    • 3. DEFINING SUCCESSProjectbusinessobjectivesIdentifystakeholders“What doyou expect?”Objectivesandconstraints3It starts with expectations of stakeholdersWhat they want… and what they don’t wantCompeting constraints go beyond costand time, there can be many othersCriticalSuccessFactorsTrade-offdecisionmakingBruno Collet 2013
    • 4. Success is subjectiveThe Project Manager establishes a system tomeasure performance as objectively as possible tofacilitate trade-off decision making.4Bruno Collet 2013
    • 5. MEASURING SUCCESS5Defining successMeasuring successA KPI is calculated based on underlying metricsand has an associated target.Bruno Collet 2013
    • 6. SELECTING KPIS6Measurablecan be quantifiedPredictivecan forecast situationRelevantlinked to CSFsEasy to collectideally automatedActionablecan trigger actionsBruno Collet 2013
    • 7. EXAMPLEWe identify stakeholders and define CSFs and KPIs for a project.Business objectives• Deliver an e-commerce solution to increase online sales• Establish a team to support solution7Bruno Collet 2013
    • 8. STAKEHOLDERS AND CSFS8UserA high qualityproduct isimplementedand utilizedCustomerBusinessobjectives areachievedProject meetsschedule andbudget targetsDeliveryManagersResources areusedeffectivelyTeamMembersProject team isable tosupportsolution in thefutureProject participants havepride ofownershipConformancebodiesProjectadheres to theorganizationsstandardsMethods are inplace toevaluatebenefitrealizationBruno Collet 2013
    • 9. CSFS AND KPIS9• Value of features delivered at completion• Quality of delivered features at completionA high quality product isimplemented and utilized• Incremental value delivery• Increased online salesBusiness objectives areachieved• Cost performance index (CPI)• Schedule performance index (SPI)Project meets schedule andbudget targets• Resources needed vs. planned vs. available vs. used• Team cohesiveness• Cycle time of work packagesResources are usedeffectively• Know-how transfer• Develop framework for solution deliveryProject team is able tosupport solution in the future• Project reputation• Contribution to professional developmentProject participants havepride of ownership• Adherence to organization project management and technical standards• Timely, accurate, and relevant project status and forecasts• Effective change and risk managementProject adheres standardsand best practices• Capability to assess benefit realization during and after projectMethods are in place toevaluate benefit realizationCSFs Key Performance Indicators (KPIs)Bruno Collet 2013
    • 10. SOME KPIS IN MORE DETAIL10KPI Owner Measurement method TargetValue of featuresdelivered at completionKey User Value of features delivered,forecasted to completion,compared to total value committedAt least 90% (Good)> 110% Excellent> 90% Good> 80% Poor< 80% CriticalQuality of deliveredfeatures at completionKey User Number of major defects indeployed solution, forecasted tocompletionNo blocking defect and at most 3 majordefects (Good)0 Excellent1-3 Good4-5 Poor> 5 CriticalIncremental valuedeliveryCustomer Variance of % value delivered(features used) / % Elapse timeAt most 20% (Good)< 10% Excellent< 20% Good< 30% Poor> 30% CriticalIncreased online sales Customer Monthly online sales generated bysolution, compared to monthlypre-project only salesIncrease by 5% mid-project, 10% project-end, 20% 6 months after delivery> 100% Excellent> 80% Good> 60% Poor< 60% CriticalContribution toprofessional developmentDeliveryTeamSurvey every member of deliveryteam, calculate averageAt least Good1 Excellent2 Good3 Poor4 Very badBruno Collet 2013
    • 11. BRUNO COLLET MBA, MSC.IT, PMPProject Management and Organisational Change Consultantwww.brunocollet.combruno@brunocollet.com11Bruno Collet 2013Project / Program ManagementChange ManagementGovernancePMI-PMBoKAgileRadical Management Lean